In the past time, i already mentioned that there is pull model and push model. Now, i will talk about one principal in pull production model. That principal is often called: kanban. And i will call it as a ‘kanban principal”.
I will not talking about history of kanban principal. My study is not good enough for giving you a worth reading fact. In this occasion, i will only try to explain kanban principal application in production process.
But, before we talking about kanban principal and it’s illustration in manufacture production process, there is one condition that the factory must have if they want to use this principal as their production model.
What is the condition i mentioned about? Actually it’s pretty easy. But, still there is a chance it become difficult. Depend on how well organized the data in your company. The condition is: we have to know our each work center capacity. It’s not only production capacity, but work center production capacity. In one department, it could be consist of many work center.
If we have a valid data about how much production capacity in each work center, then we could try to apply the kanban principal.
Kanban principal in production process mean that each work center will only doing production activity when there is a need from their next sequence of routing. In Kanban principal, it doesn’t care about how many raw material available to be taken. Production activity will not be done without order from customer or next process work center.
This is the simple illustration: production routing from work center A to work center B to work center C and the last is the customer D. A will only doing the production activity if there is a request from B. B will only doing the production activity if there is a request from C. C will only doing the production activity if there is a request from marketing. Then finished goods will be send to D.
Let’s say in this example, A capacity is 6. B capacity is 5. and C capacity is 7. And the randomance of B is 95% (95 production result out of 100 raw material). Then C Randomance is 90%. And let’s say, the order from customer is 20.
So, in production planning from PPIC, to make 20 finished goods from C, we will need at least 23 production result from B. And to make 23 Product from B, we will need 25 production result from A.
Although A still can produce 30 goods (because don’t forget, it has 6 capacity production) to B, B will only process request from C, which is 25 goods. The rest of them will not be taken by B. It will become the stock of A. Next, B will produce 23 product for C which is after used by C, will change into exact number the customer order.
With this kanban principal, will make stock movement become vast and quick, so the unused stock will not be too much. This principal is the one who make just in time concept become possible to be done by many many Japanese company.
That also make product quality become controllable. Because the product is still fresh. Not too far from fry concept, who will be fried when there is an order. Because your customer love some hot food, right?
The question is, why we have to have work center capacity data? Because like i said in the illustration above, if we don’t know the capacity of each work center, then the calculation as a based of production planning can’t be done. The effect is the production process become less efficient (because too many raw material, or not enough material). And there will be no just in time, just the loss company. Late production process could bother your cashflow or make your cost become too high. Too many stock will also have a potential to make our stock value decreased. And that two option is lost to lost option, right?
Yap, and that is a glance about kanban principal in production process. I hope this have a good use for you. And if you have a question, you can ask them in comment box. Happy discussion!